China Shenhua Energy

China Shenhua Energy Company Limited is the largest state-owned coal mining enterprise in Mainland China, and in the world

$78.52B

MarketCap CN

CN China

Country

Summary

China Shenhua Energy Company Limited and its subsidiaries engage in the production and sales of coal and power; railway, port, and shipping transportation; and coal-to-olefins businesses in the People's Republic of China and internationally. 

It operates through six segments: Coal, Power, Railway, Port, Shipping, and Coal Chemical. The Coal segment produces coal from surface and underground mines; and sells coal to power plants, metallurgical and coal chemical producers, and provincial/regional electric grid companies. As of December 31, 2021, this segment had recoverable coal reserves of 14.15 billion tonnes. The Power segment generates electric power through thermal, wind, water, and gas; and sells electric power to power grid companies. The Railway segment provides railway transportation services. The Port segment offers loading, transportation, and storage services. 

The Shipping segment provides shipment transportation services. The Coal Chemical segment produces and sells methanol; polyethene and polypropylene, as well as other by-products. The company was incorporated in 2004 and is based in Beijing, the People's Republic of China. China Shenhua Energy Company Limited is a subsidiary of China Energy Investment Corporation Limited.


History

China Shenhua Energy Company Limited (CSEC) is a Chinese state-owned coal-producing and integrated energy company. It is the largest coal producer in the world, and one of the largest integrated energy companies in China. It was established in 1995 and is listed on the Shanghai and Hong Kong Stock Exchanges.

The company was founded as Shenhua Group in 1995 by the Chinese government, and it was the first Chinese company to be listed on the Shanghai Stock Exchange. Shenhua Group was created to manage the restructuring of the coal industry in China. In 2005, Shenhua Group spun off its coal production business and established China Shenhua Energy Company Limited as a separate entity. On August 15, China Shenhua Energy became a constituent of the Hang Seng China Enterprises Index. On November 7, 2007, Hang Seng Index Services Company announced that China Shenhua would have been Hang Seng Index Constituent Stock since December 10 of that year.

CSEC is the largest coal producer in the world, and one of the largest integrated energy companies in China. It produces and sells coal, electricity, coal-based chemical products and related services. The company also has investments in coal-related projects, such as coal-to-liquids, coal-to-chemicals and coal-to-gas projects.

In September 2009, Shenhua announced that over four years they will invest US$39.5 billion in coal to increase their production. In September 2010, the company agreed to an extensive cooperation contract with Mitsui & Co., encompassing shipping, overseas mine development, coal usage and chemical manufacturing. In December 2010, Shenhua invested $2 billion in the construction of a railway; financing 35% with its own capital. In July 2011, Shenhua acquired a 40% stake in Mongolia's biggest coal project, with a Russian syndicate controlling 36% and Peabody Energy owning the remaining 24%.

Over the years, CSEC has continued to expand its operations and investments. The company has made investments in rail, port and power plant construction, as well as in overseas coal mines. CSEC has also developed a large-scale integrated energy supply system, which includes coal, electricity, coal-based chemicals and related services.

Today, CSEC is one of the leading energy companies in China and is one of the largest integrated energy companies in the world. It is a major contributor to China’s energy security and is a major player in the global energy market.


Mission

China Shenhua energy's mission is to supply green energy for the social development of the world.

China Shenhua owns and operates low-emission coal-fired generating units with large installed capacities and high parameters.

To help realize the national goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, China Shenhua actively promotes the development of new energy by investing in industrial funds and new energy projects. It has invested 6 billion yuan to co-establish Guoneng New Energy Industrial Investment Fund and Guoneng Green and Low-carbon Development Investment Fund, which will spur the launch of wind and PV power projects with a total capacity of nearly 10 GW. Some of the projects it invested in have been connected to the grid at full capacity.


Vision

The company's vision is to:

“Pursue the integrated development of coal mine, railway, port, electricity, coal-to-liquids, and coal-to-chemicals, creating a large-scale energy enterprise with international competitive capabilities.”

 


Key Team

Xu Mingjun (Executive Director)

Jia Jinzhong (Non-executive Director)

Yang Rongming (Non-executive Director)

Dr. Yuen Kwok Keung (Independent non-executive Director)

Dr. Bai Chong-En (Independent non-executive Director)

Dr. Chen Hanwen (Independent non-executive Director)

Wang Xingzhong (Employee Director)


Recognition and Awards
China Shenhua Energy is awarded the “AA” Level, ranking first in the oil, gas and consumable fuels industries 2022. In the 2020 Forbes Global 2000, China Shenhua Energy was ranked as the 168th -largest public company in the world.

Products and Services

China Shenhua’s main businesses include the production and sales of coal and electricity, rail transportation, port handling, shipping, and coal-to-olefins production. China Shenhua owns quality coal resources, such as Shendong Coalfield, Zhunge’er Coalfield, Shengli Coalfield and Baorixile Coalfield. In 2021, the Company produced 307 million tonnes of commercial coal and the coal sales reached 482.3 million tonnes.

China Shenhua owns and operates low-emission coal-fired generating units with large installed capacities and high parameters. As at the end of 2021, the Company owned and operated the power generating units with a total installed capacity of 37.899 GW. The total power output dispatch amounted to 156.13 billion kWh in 2021.

China Shenhua controls and operates a loop radiating railway network around the major coal production bases in western Shanxi, northern Shaanxi and southern Inner Mongolia, the channel of China’s West to East Coal Delivery, also known as Shenshuo-Shuohuang Line, as well as Huangda Railway, a new channel for energy transportation in Bohai Rim. The Company operates 2408 kilometers of railways, and the turnover of self-owned railways reached 303.4 billion tonne kilometers in 2021.

China Shenhua controls and operates several ports and terminals, with Huanghua Port being one of them, with a combined annual handling capacity of 270 million tonnes. China Shenhua also manages a shipping fleet of self-owned vessels with a total deadweight capacity of 2.18 million tonnes, and runs coal-to-olefins projects with an annual production capacity of 600,000 tonnes.

China Shenhua has reached world-leading level in technologies for coal production and production safety, and outpaced its domestic peers in terms of low-emission coal-fired power generation, heavy-haul railway transportation and other technologies.


References
China Shenhua Energy
Leadership team

Mr. Qing Huang (Sec. of the Board & Gen. Counsel)

Mr. Mingjun Xu (Exec. VP & Exec. Director)

Products/ Services
Clean Energy, Energy
Number of Employees
Above 50,000
Headquarters
Beijing, Beijing, China
Established
1995
Company Registration
SEC CIK number: 0001445470
Net Income
1B - 20B
Revenue
Above - 1B
Traded as
1088.HK
Social Media
Sun Mar 03 2024
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